Q2.

ANSWER THE FOLLOWING QUESTIONS

1. Define charts, graphs and how they are useful in business decisions?
A chart is a representation of data in graphical form, in which the data is represented or
presented by symbols, such as bars in a bar chart, lines in a line chart, or slices in pie charts. It
can represent tabular numeric data, functions or some kinds of quality structure and provides
different info.Whereas a graph is a pictorial representation or a diagram that represents data or
values in an organized manner. The graph often represents the relationship between two or
more things.Both graphs and charts are useful in making business decisions as these help in easy
visualization of any trends present in data. In highly random data like stock prices and the
textual description might not be possible to explain the price or other fluctuations, but graphs
and charts overcome this hindrance as they can be comprehended easily through human
beings.It might be a chart showing or stating the progress of the team in making a big project. Or
it might be the graph stating the business's sales and comparing it with the sales of the
competition. Either way, these graphs as well as the charts make the information much easier to
digest as well as understand.

2. Write down the usage and purpose of column chart, pie chart and line chart.
A columnColumn chart is well suited for depicting the change in data over a period of time.
Negative values can also be depicted in the column chart.Pie charts are used to show
proportional data. It shows the relationship of parts to a whole.Line chart is normally used to
represent time series data or continuous data with the help of connecting dots.

3. Describe about data series, legend, and data labels?

Data series is the column or the rows of the numbers which are entered into the worksheet and
then plotted into the chart like the quarterly list of the profits of the business.
The data series is used in order to create the chart.
Legend is defined as the space which is located on the chart in the plotted area. It has the keys
of the legend that are connected to the data source.
Legend automatically appears when the person inserts the chart into the excel.
Data labels are used in order to display or present the source data in the chart directly. And it
comes from the source data but involves the values as well.
It is visible outside the bar end, in the column or bar chart.

4. Describe use of Excel for preparation of chart.

Excel charts allow administrations to create visualizations of data sets.

A chart can create a clear picture of a set of data values than a table with rows of numbers in it.

The excel application automates the process of generating charts from existing data sets.
The function of chart in Excel enables the users to strike a balance among automation and
customization.

Charts in excel are safer and easy to operate after they have been initially generated, by selecting a
chart and choosing from the available options to amend the chart.

The advantages of the charts and graphs also come into play in presentations, where they can be
used for illustrating the trends quickly in data for others to see.

5. Differentiate between pie charts, line charts and column charts respectively?
Column charts are the ones that represent data using vertical bars. Pie charts show the
relationship of parts to a whole by representing data in slices. While Line chart depicts the data
using connected points.Column charts are useful for comparing data across categories. Pie
charts are useful for showing the relative shares of categories in a whole. While Line charts
shows trend in a series over time.Negative values can be depicted in both Column and Line
charts while not in Pie charts

6. Described the steps to move, resizing and reposition a chart.

To move a chart in Excel within our worksheet we click and drag it inside the “chart area” of the
chart, When the chart is in the desired location, release the mouse button to drop the chart into
its new worksheet location. This is the same in case of the reposition of chart. We can reposition
our chart as per our requirement.

7. What does percentage in chart represent and how it being calculated by the software?
The complete portion in a chart such as the pie in the pie chart represents 100% as a whole
while the percentage values which are displayed by the different pie slices mean the different
portions of the pie which are meant to represent a particular section of the entire group or
category. The percentage in a chart represents the relative values or share of the different
elements such as the size of the total sales in each quarter where the whole chart displays the
sum of all the percentage values of total sales in each quarter which equals to 100%.The
percentage value of each slice of pie in a pie chart can be calculated if the total amount of data
is provided. In order to calculate the percentage value of each slice, the angle of each slice
needs to be measured and then divide this angle by 360 and finally multiply it by 100, the
resulted percentage will then be displayed by the software.
8. What are the differences between
a. Area, XY chart and doughnut
b. 2-D Charts and 3-D Charts
The differences between the area, XY chart, and doughnut chart are:-
Area charts are prepared to track the changes over time for one or more groups whereas the
doughnut charts cannot measure such changes over time.
Area charts are user when the user wants to make a comparison between two or more related
groups of the same category while the doughnut charts are used when the user wants to
compare the relative share of the same category which can be expressed in percentages.
 Area charts are like line charts while the doughnut charts are like pie charts.
The differences between the 2-D Charts and 3-D Charts are:-
In 2-D charts, the data is plotted in two-dimensional format- length and height whereas in 3-D
charts, the data is plotted in three-dimensional format- length, breadth and height.2-D charts
contain only two axes which are vertical and horizontal axis while 3-D charts contain an
additional axis which is called depth axis.2-D charts include line charts, area charts, bar charts,
radar charts, etc. whereas 3-D charts are required to represent the volume as volume needs to
be indicated with the help of three parameters- height, length and breadth.
10. Different types of charts which can be prepared using Excel?

The different types of charts which can be prepared using Excel are as follows:-

1. Pie Chart – A pie chart is prepared when there is a need to quantify items and to show
them as percentages. A pie chart represents data in a circular graph and the pieces of
graph are proportional to the fraction of the whole in each class of category.
2. Bar Chart – A bar chart is prepared when the user wants to compare the values across a
few categories. In a bar chart, the values are displayed horizontally and the name of the
category is displayed vertically. Bar charts tend to represent and compare a large number
of series better than the other types of chart.
3. Column Chart – The preparation of a column chart is similar to that of a bar chart. In a
column chart, the vertical axis contains the numerical values while the horizontal axis
represents names, time or other category.
4. Line Chart – The line chart is effectively used to display the trends over a period of time
i.e. days, months, years, etc. In a line chart, the numerical values are displayed vertically
whereas the time or other category is displayed horizontally. The line chart represents the
data with the help of lines of different colours to highlight the different trends or
categories.
5. Area Chart – The area charts are similar to the line charts except for the fact that the
area below the plot line is solid and area charts are used to show the trends over time or
other category just like the line charts.
6. Scatter Chart – The scatter charts are prepared to observe how the values of two
different series compare over time or other categories. The scatter charts can be prepared
in different formats in which markers can indicate the data points and the points can be
connected or unconnected with straight or smooth lines.
7. Doughnut Chart – The doughnut charts are used to represent the data in rings where
each ring indicates a data series such as the inner ring can represent gas tax revenues
while the outer ring can be used to represent the property tax revenues. A doughnut chart
shows the relationship of the parts to a whole like a pie chart, but it can contain more than
one.
8. Radar Chart – A radar chart is prepared for the comparison of the aggregate values of a
number of data series such as the highest and the lowest values of sales of the different
products. Radar charts do not have the horizontal axes. These charts are also known as
spider charts, polar charts, web charts or star plots.
9. Combo Chart – A combo chart is prepared when the user want to highlight the different
types of information or data in a chart. It combines two or more chart types in order to
make the data clear and easy to understand.
10. Other Charts – Excel can be used to prepare other types of chart also which include the
Stock Surface, Bubble, Clustered and Stacked Column Charts.

Pie Chart :
A pie chart is a special type of chart in which data is displayed with the help of pie slices where
each slice of the pie is relative to the size of that category in the group which is being
represented by that particular pie slice.
In other words, a pie chart represents data in a circular graph and the pieces of graph are
proportional to the fraction of the whole in each class of category.
Pie charts are helpful in showing the proportional or percentage data and typically the
percentage share displayed by each category is provided next to the corresponding slice of pie.
A pie chart helps in summarising a large data set in a simpler visual form.
The complete pie in the pie chart represents 100% as a whole while the percentage values
which are displayed by the different pie slices mean the different portions of the pie which are
meant to represent a particular section of the entire group or category.